Stock exchanges raise the bar for SME offers

The National Stock Exchange (NSE), the country's largest bourse, is asking IPO-bound SMEs to have free cash for at least two out of the three years preceding their IPO and provide a utilisation certificate from the statutory auditor to ensure proper use of funds raised through the IPO, said a person with direct knowledge of the matter. The new criteria are in addition to the existing requirements to launch an SME IPO.